ANNUAL TOURISM REPORT 2013 Finland Article 3 of Council Decision 86/664/EEC1 of 22 December 1986 establishing a consultation and cooperation procedure in the field of tourism stipulates that: "...each Member State shall send the Commission, once a year, a report on the most significant measures it has taken and, as far as possible, on measures it is considering taking in the provision of services for tourists which could have consequences for travellers from the other Member States. The Commission shall inform the other Member States thereof". The following reporting form aims at facilitating compliance with this Council Decision. 1 http://eurlex.europa.eu/Notice.do?val=123070%3Acs&lang=en&list=123070%3Acs%2C&pos=1&page=1&nbl= 1&pgs=10&hwords= 1 SECTION 1 TOURISM ORGANISATION AND GOVERNANCE This section is aimed at reporting on the following: Administrative organisation Territorial organisation Organisation and links between the national tourism authority and the provinces / regions Organisation and links between the national tourism authority and industry associations, stakeholders and customers 1.1. Short description of the administrative and territorial organisation of public bodies responsible for tourism The responsible ministry for tourism policy is the Ministry of Employment and the Economy. It is responsible for defining the priorities of tourism policy, for the general development of tourism, and the coordination of support measures for tourism. It is also responsible for preparing legislation on tourism and maintaining international relations in the tourism sector. The Finnish Tourist Board is a national agency under the Ministry of Employment and the Economy responsible for actively promoting Finnish tourism. The Finnish Tourist Board works closely with ministries, travel businesses, transport companies and Finnish regions. This cooperation involves research, product development and, above all, marketing of leisure tourism to Finland from abroad. Outside Finland, the Finnish Tourist Board promotes Finnish tourism using the name Visit Finland. In addition, other organizations supporting the tourism industry development in Finland are for example Finnish Safety and Chemicals Agency (Tukes) that supervises and promotes consumer safety, Metsähallitus that manages nature conservation and hiking areas and Finpro that is a national trade, internationalization and investment development organization. At the territorial level, there are various public authorities handling local tourism affairs, together with other tasks. In 2010, as part of the reform project for regional administration, two regional state administrative bodies were established, the Regional State Administrative Agencies and the Centres for Economic Development, Transport and the Environment (ELY). These agencies foster regional parity by executing all legislative implementation, steering and supervisory functions in the regions. ELY-centres on the other hand manage the regional implementation and development tasks of the state administration, offering financing, advisory, consulting and training services for tourism companies’ business development. There is a sector manager for tourism who acts as a national expert on tourism for all ELY Centers. In additions, each ELY-centre has also a named contact person for tourism affairs. Regional Councils, as joint municipal authorities, are in charge of regional planning and they supervise the regional interests, including the development of the tourism sector. There are also about 30 regional tourist organisations in Finland that have varied objectives, tasks and ownership structures. Locally, tourism issues are handled by municipalities and local tourist information offices. 2 1.2. Organisation chart reflecting the above described administrative and territorial organisation. EU Parliament Government with ministries (most imporant related to tourism) Employment & Economy Finnish Tourist Board Tekes Centres of Expertise Finnish Competition and Consumer Authority Finnish Safety and Chemicals Agency Centre for Economic Development, Transport and the Environment (15) Nordia Management Ltd Environment Transport & Communications Municipalities Finnish Environment Institute Statistics Finland Universities Polytechnics Vocational Other schools Regional councils (18) Foreign Embassies Regional Development centres LTD Finavia Regional State Administrative Agencies (6) Interior Education & Culture Finnish Transport Agency Rural policy Committee Finpro Invest in Finland Finnvera Finance Regional tourism organisations (30) Strategies, Development programmes, Projects, Working groups Entrepreneurs Tourism related trade unions, entrepreneural organisations, umbrella organisations 3 Finland Promotion Board Agriculture& Forestry Agency for Rural Affairs Metsähallitus Finnish Forest Reaserch Institute Finnish Game & Fisheries R I Rural Network of Finland 1.3. Relationship and main areas of cooperation between national/regional public tourism bodies and the most significant / active private organisations / stakeholders / industry associations /unions / consumer organisations Finnish Hospitality Association (called MaRa in Finnish) - operates as a guardian for tourism related industries to and in Finland - represents organisations such as hotels, restaurants, amusement parks, programme services - 2400 member organizations - representation in various working groups Association of tourism organisations in Finland (called SUOMA in Finnish) - Serves as an umbrella organization for regional tourist organisations, tourist centre organisations and tourist information offices in Finland and supervises their interests with respect to central organisations in the tourist industry, state tourist administration and other organisations operating in the industry, without seeking direct financial gain or benefits for its members. - it has 20 regional tourism organization members and 117 local tourism offices members - presentation in various working groups The Association of Finnish Travel Agents (AFTA, SMAL in Finnish) - looks after the interests of tour operators and travel agencies. It is a member of ECTAA, the European Travel Agents' and Tour Operators' Associations. AFTA has more than 160 full members with some 300 offices and around 75 associate members, including airlines, shipping or land transport companies, accommodation businesses and tourism sector magazines. - presentation in various working groups The Finnish Ski Area Association (SHKY) the umbrella organisation of Finnish ski resorts, has a membership of 73 ski resorts and 47 ski schools. Members represent 99 % of the entire industry’s lift ticket turnover. presentation in various working groups 1.4. Existing national/regional specific legislation on tourism The principal of industrial freedom is very strong in Finland and it means that all EEA residents may carry on legal trade without a license from the authorities. Therefore there are very few tourism specific legislations. - The Act on Accommodation and Food Service Operations (308/2006) Package Travel Act (1079/1994) Travel Agency Act (1080/1994) and Decree (366/1995) Finnish Tourist Board Act (1424/2011) and Decree (1425/2011) Consumer Safety Act (920/2011) SECTION 2 - MEMBER STATE ECONOMIC DATA AND TOURISM BUDGETS This section is intended to provide an overview of the key statistical information about the general tourism economic environment of the Member States. See annex “Statistics” SECTION 3 NATIONAL TOURISM POLICY AND STRATEGIES This section aims at collecting information on the Member States general strategic vision as well as the specific objectives of their tourism policies. 4 3.1. Key mission, main medium and long-term objectives and the main targets of your national tourism policy. Finland’s Tourism Strategy to 2020 – 4 good reasons to develop tourism industry in Finland A revision of the tourism strategy in 2010 concentrates in actions, which can be implemented by the public sector. Strategic aims are: - to increase the number of employment in all tourism braches (not only branches, which generate tourism jobs) by 2020 to 171 000 persons (now 130 500 persons). (Finland’s inhabitants are now about 5, 4 million persons.) - tax revenues from all tourism branches are about four billion Euros at the moment – to increase the sum up to 7,5 billion Euros in 2020 - added value of the whole tourism branch is at the moment about 3,8 percent of the GDP – aim is to increase it to 5,1 percent by 2020 The idea is to strengthen the strong points of Finland and to develop tourism destinations and enterprises operating in the networks. Strategy consist of three sections: 1) Developing the tourism sector 2) Strengthening of Finland’s image as a tourist destination 3) Developing general business environment 1) Developing the tourism sector has 6 different actions mentioned very clearly: 1.1. Strengthening regional output of tourist destinations and networked tourism enterprises (e.g. investments, electronic systems, networking and marketing of regions) 1.2. Strengthening tourism enterprises both domestically and internationally (e.g. theme based tourism product development, promotional activities) 1.3. Sustainable tourism product development in regions and tourism enterprises (e.g. planning, energy and traffic solutions, water supply and waste water treatment, solutions, which support choices of future consumers) 1.4. Developing education and training (e.g. education in accordance with the need, culture based work-related immigration) 1.5. Developing infrastructure in tourism destinations 1.6. Better use of information and research in tourism (e.g. statistics, other research information, information data base, industry based research) 2) Strengthening of Finland’s image as a tourist destination has two actions: 2.1. Promoting Finland abroad (e.g. Finnish Tourist Board, tourism brand image, joint projects and coordination of Finland’s image abroad) 2.2. Increasing the visibility of Finland abroad (e.g. congresses, meetings, events, incentives, sports and cultural events in Finland) 3) Developing general business environment has three action entities: 3.1. Taxation (e.g. VAT, electric and other taxation) 3.2. Accessibility of Finland (e.g. railway stations in Helsinki and Tikkurila, when new fast train to St. Petersburg starts, air travel) 3.3. Promoting year-round tourism (e.g. staggering of school holidays) 3.2. Multi-annual national tourism strategy specific / relevant for tourism Finland’s Tourism Strategy to 2020 - 4 good reasons to develop tourism industry in Finland was 5 published by the Ministry of Employment and the Economy at the beginning of June 2010 (see 3.1.). Especially the public sector is responsible for implementing the revised strategy, but in the first hand, the Ministry of Employment and the Economy. Implementation of the strategy is monitored on annual basis and strategy is updated, if necessary, at four-year intervals. The Ministry of Employment and the Economy has appointed in 2012 a working group comprising representatives of the tourism industry to monitor the implementation of the tourism strategy. Revision report of the first three year 2010-2012 came out in May 2013. “Road Map for the Future of Finnish Tourism” will be formed and launched in 2014. 4. TOURISM CHALLENGES, MEASURES AND INITIATIVES This section aims at collecting information on the challenges the Member states and the tourism industry has to deal with as well as the measures put in place to tackle them. 4.1. Key challenges for the tourism sector. IMPORTANCE / PRIORITY CHALLENGES HIGH Diversification of the tourism offer MEDIUM LOW X Protection of the cultural heritage X Protection of the natural heritage X ICT and innovation X Connectivity and transport X Employment in tourism X Improving education and skills in tourism X Combatting seasonality X Demographic changes X Improving accessibility of tourism X Improving socio-economic data in tourism X Economic crisis and recovery X Improving the sustainability of tourism offer X Combatting climate change X Improving the quality of tourism offer X Developing responsible tourism practices X Competition against other destinations X Administrative / regulatory burden, bureaucracy X Other, please specify 4.2. Main measures aimed at tackling the key high-priority challenges indicated above Seasonality: 6 The aim of two national product based programmes (OutdoorsFinland and CultureFinland), is to reduce seasonality/prolong the season by promoting the development of new offering. Financial support is also targeted towards the same goal. Research and monitoring for new markets (BRIC) and target groups (young Japanese women). In the tourism strategy, we have written a wish that the Ministry of Education and Culture could reconsider the timing of school holidays during summer and winter holidays. Connectivity and transport: The Ministry of Transport and Communication has special interest in developing public transport. It supports public transportation by raising the standard of the service. The main projects related to tourism: The air transport strategy project, due to be completed by the end of 2014, is part of the Government Transport Policy Report which was submitted to Parliament in spring 2012. A new rail line to Helsinki-Vantaa airport will be completed by 2015. The Smart Transport Corridor (STC) between Helsinki and St. Petersburg aims to improve sustainable mobility and effective flows of both personal and freight transport by systematically utilising advanced ITS services. Protection of the cultural and natural heritage: The Ministry of the Environment and the Ministry of Agriculture and Forestry promote the tourism development of the national urban parks and national parks. The National Forest Programme (NFP) of Finland aims to ensure forest-based work and livelihoods, biodiversity and vitality of forests, and opportunities for recreation for all citizens. There are various on-going national and regional projects related to the natural and cultural heritage. In June 2013 a new Finnish Nature Centre, Haltia, was opened. Presenting the best of Finland’s natural features and biodiversity, and enable people living in or visiting the Helsinki area to get perspectives on the natural wonders of the whole country. ICT has become one of the main discussion issues in tourism field. So actions are surely to see daylight in the near future (“Road Map” see 3.2.). Sustainable development will stay as a key challenge in tourism business. The understanding must be raised concerning this challenge. 4.3. Legislative measures – if any -at EU level related to the above mentioned challenges 4.4. Measures implemented to increase tourism flows from other EU Member States and from third countries Parliament of Finland gave extra budget of 1 million euros to product development (Wellness, Winter Season) and promotion in Russia. The project is carried out 2013-14. Target areas are Moscow and other main cities in Russia. 4.5. How promotional measures implemented make use of / capitalise on the promotional campaigns carried out by the Commission (i.e. Ready for Europe, EDEN, low-season tourism campaigns, etc.) - 7 4.6. Measures /actions which contribute to maximising the potential of national policies for developing tourism (e.g. ensuring that tourism interests are taken into account in the development of other policies which may have impact on tourism) Tourism Key Project 2014 A national top project for tourism started by Minister of Economic Affairs, which main goals are to increase Finland’s attractiveness as a tourist destination, to support competitiveness and growth in the travel and tourism business, and to increase appreciation towards tourism. Road Show during the spring 2014 brought together nearly 600 professionals to discuss tourism related issues. Inter-ministerial working group is a non obligatory working group between the ministries involved in tourism related matters. Members of the group include - Ministry of Employment and the Economy (2 representatives) - Ministry of Agriculture and Forestry (3 representatives) - Agency for Rural Affairs (1 representative) - Ministry of Transport and Communication (1 representatives) - Ministry of the Environment (1 representative) - Ministry of Education and Culture (2 representatives) - Ministry for Foreign Affairs (4 representatives) - Centre for Economic Development, Transport and the Environment in Lapland (1 representative) Finnish Tourist Board (1 representative) 4.7. Measures/actions which contribute to maximising the potential of EU Financial Instruments for developing tourism (e.g. information on main objectives, financing opportunities, training courses, etc.). Different public and private organisations hold EU financing opportunities information events all over the country. 4.8 EU programmes most frequently and for what purposes of tourism development European Regional Development Fund (ERDF) European Agricultural Fund for Rural Development (EAFRD) European Neighborhood and Partnership Instrument (ENPI) Interreg 4 A, 4 C North European Social Fund (ESF) Three main categories for targeting the content of EU funding are enterprise support projects, operational activities, and services that support tourism, including infrastructure. Examples of operational activities are marketing, product development, networking projects and research. Supporting services and infrastructural projects include development actions for natural sites and trails, cultural- and sport destinations, events and transportation sector. 8 Sustainable and responsible tourism, whether talking about economic, social or environmental sustainability, is a broad concept and may be interpreted in various ways depending on the attributes of a Member State or region. The following questions focus on sustainability and responsibility in tourism as described in the 2007 Commission Communication2 on an agenda for sustainable and competitive European tourism. 4.9. Sustainable destination: What support is given to strengthen destination management at the national /regional/local level (e.g. supportive policy environment, knowledge networks, training programmes, technological support tools, financial support, promotional activities, etc.)? The development of tourism centres and their spheres of influence is one of the two strategic focus areas in Finland’s national strategy for tourism. Therefore financial support has been granted along these lines. In Finland there are many eco-labels which aim at reducing resource use and the production of waste. In the Tourism Strategy, there is an action which aims at this direction. In 2012 various guidebooks on energy efficiency in tourism were published for the use of entrepreneurs. In addition for example a pilot project of a sustainable tourist centre was launched. The project included a carbon footprint counter and an energy cottage service which help customers follow how their own behaviour affects the energy consumption and how to reduce it. DQN – (destination quality net) is a 2,5-3 year programme for tourist destinations and centres, consisting of research, training and development aiming at the establishment of continuous quality work, follow-up of this work, and systematic improvement of quality and the sustainability. There is a special Green DQN concentrating on quality and environmental issues. 4.10. Sustainable businesses: What support is given to strengthen the sustainability and competitiveness of tourism businesses (e.g. supportive policy environment, knowledge networks, orientation of business support services to sustainability, training, financial incentives, promotional activities, etc.)? Financial support, various training programmes, pilot projects, guidebooks, tools and seminars aimed at businesses to strengthen their sustainability and competitiveness. 4.11. Responsible tourism: What support is given to tourists and the tourism industry to promote their responsible practices and choices (e.g. awareness raising, sustainability in education, national marketing and media campaigns, promotion of certification schemes, etc.)? There are various supportive actions aimed at tourists and companies. For example: - The Nordic Ecolabel is a voluntary ecolabelling scheme that evaluates a product's impact on the environment throughout the whole life cycle. By using Nordic Ecolabelled hotels, restaurants and conference services a consumer can contribute to a more sustainable environment, and be among the millions of people in the Nordic market who daily make more climate-friendly choices. - Metsähallitus (forest administration) has published a guide “Act responsibly in Finnish nature Environmental Guide for Tourists and Recreational Users of Nature” - Quality1000 is a programme tailored for the hospitality industry and founded on international criteria for quality awards, including responsibility. One of the programmes under Quality 2 http://ec.europa.eu/enterprise/sectors/tourism/documents/communications/commission-communication2007/index_en.htm 9 - 1000 is aimed at destinations “Tourism destinations in Green DQN® . Green Start® is a tool for responsible business with which company is enabled to launch a practical environmental program and proceed towards sustainable tourism together with its operating environment and customers . The logo is used to help the customers identify and select these responsible companies and destinations. Companies of Himos tourist resort (located in Central Finland) use internet based carbon footprint calculator. The customers are able to calculate their own carbon footprint while holidaymaking in Himos and have the option to make responsible travel decisions. 4.12. Most significant planned / future tourism measures (legislative or non-legislative) which envisage to impact travellers visiting the country from other Member States or from outside Europe Travel facilitation related to tourism from Russia (visa free entry to Schengen area, development projects in the eastern boarder) Transit tourism development (passengers from Europe to Asia via Helsinki airport) 5. ADDITIONAL INFORMATION 5.1. Three best practices of tourism measures implemented at national, regional or local level Lapland – The North of Finland project - co-operation between actors in Lapland and Northern Finland image marketing campaigns in selected markets in Europe (UK, Germany, Netherlands, Russia) marketing brand: Only in Lapland National theme-based tourism development programmes Culture Finland and Outdoors Finland. - 5.2. They are co-coordinating the development work in their specific fields, conducting research projects, developing tools for product development and for supporting new business opportunities and organising sales and networking events. The programmes’ achievements include better cooperation between those involved, increased use of research information, and the introduction of new products for consumers. What policy developments / actions / activities would you expect from the Commission's tourism team that would serve better (than the current ones) the EU Member States and the industry VISA issues Strengthen and unify statistical data gathering, tourism research and market research in EU Best practices and benchmarking cases delivery 10